Crypto Guide for Beginner Traders
This crypto guide for beginner traders is the ultimate guide into the crypto world that will teach you the basics of cryptocurrency trading. Like anything in life, you don’t just invest without knowing what it is you are investing in. Just keep that in mind!
Our team at Trading Strategy Guides has already developed the best cryptocurrency trading strategy which has got a lot of attention from the trading community. There is a strong reason why the best Bitcoin Trading Strategy – 5 Easy Steps to Profit is trading number 1 on the Google page – traders like to make money using our trading advice.
If you’re brand new to trading in financial markets in general you may want to check out our beginners guide to understanding financial markets
The first step you need to understand is what cryptocurrency is. If you don’t understand what Bitcoin is, what Ethereum is, or what blockchain technology are you’ll not be able to successfully trade cryptocurrencies.
Our cryptocurrency trading guide pdf will answer all these questions and more.
The majority of people investing in cryptocurrency are new investors. If you’re new to the cryptocurrency sphere, or if you’re worried about how to approach it in a successful manner, keep reading.
Moving forward, we’re going to discuss the basics of the cryptocurrency guide for beginners and highlight how you can build your own cryptocurrency portfolio.
This guide for beginner crypto traders will teach you everything that you need to know to get started investing in cryptocurrency with the right tools.
Cryptocurrency Guide for Beginners
Step #1 Open an account with a Cryptocurrency Exchange
Once you have a grasp around the cryptocurrency industry, the blockchain technology, and different cryptocurrencies, then you can start building your own portfolio.
The first thing you need is access to the “marketplace,” where you can buy these cryptocurrencies.
If you’re interested in trading Bitcoin then you have a broad range of cryptocurrency exchanges from where to choose. Make sure the exchange you pick accepts fiat deposit so you can buy Bitcoin directly with your fiat money (US Dollar, Euros, etc.).
Secondly, you want to make sure your preferred cryptocurrency is listed on the exchange. The most popular Crypto Exchange is CoinBase. Many altcoins are only listed on specific crypto exchanges. Make sure you choose an exchange that offers the altcoin you wish to trade.
An altcoin is basically a cryptocurrency that isn’t Bitcoin like Ripple, Litecoin, or Ethereum. It’s an “alternative” coin.
If you want a bunch of fancy tools with which you can buy and sell cryptocurrencies, you’ll want to use one of the exchanges that offer you a large variety of order types.
Note* An important factor when deciding your preferred cryptocurrency exchange is to research it thoughtfully and also listen to other user reviews and experience.
Now that we have a place where we can buy cryptocurrencies, it’s time to learn how to pick those cryptocurrencies that will yield the best performance.
Best Places to Buy and Sell Cryptocurrency?
#1 Binance is the most trusted and recommended place to go for all things cryptocurrency. Binance is known for its professional team, proven products, reliable technology, and industry resources. They have a solid relationship with industry leaders and are capable or 1,400,000 orders per second. This makes them the fastest exchange in the market today. You can sign up with them in less than 5 minutes here.
Get $10 Free with Coinbase: Open a coinbase account using the link below and they will give you $10.
The Top brokers that we recommend if you trade cryptocurrency:
1. TradersWay – These guys offer great support and will assist you with any questions you may have about your account! They do an excellent job helping their traders by assisting them with emails that will give you useful information on the market’s validity. You can learn more about this broker here (USA Traders).
2. Coinbase – #1 place to buy and sell cryptocurrency!
3. Binance – Another popular place to buy and sell cryptocurrency.
Both of the brokers above support bitcoin trading at this time. They are trusted and have a rock-solid reputation in the trading community. We only recommend people that we trust. Both FXOpen and Fxchoice will welcome you with open arms! Also, read Everything you need to know about brokers.
Step #2 Select the coins you want to invest for the long-term
This cryptocurrency guide for beginners is more focused on long-term investing in crypto coins. You can invest in multiple cryptocurrencies but our team at TGS recommends to first start trading one coin.
We’re going to show you all the basic steps to make sure you purchase the right cryptocurrency.
There are thousands of cryptocurrencies available to trade on exchanges across the globe so there is a big variety to choose from.
By using CoinMarketCap a free cryptocurrency resource website you can find all the different types of coins and what their market capitalization is and how much money those currencies are worth.
The guide to cryptocurrency trading will give you a premier selection of the best cryptocurrencies.
There are a few different things you want to keep in mind when selecting a cryptocurrency and the market valuation is probably an important factor.
We can say there are three main valuation types that define cryptocurrencies:
- Large-cap (top 5 coins).
- Mid-cap – anything bigger than $200M.
- Small-cap anything smaller than $200M.
Don’t make the mistake and buy cryptocurrencies just because they are cheap and trading at 1 cent. It’s highly unlikely that a 1 cent coin will go up to $200. This is because the actual dollar value per coin doesn’t matter in the grand scheme. It’s the market valuation that counts.
The market valuation is calculated by the number of coins or tokens multiplied by its current price.
Note* We recommend only investing in large and mid-cap cryptocurrencies.
Step #3 What price is your preferred cryptocurrency trading at? Check through multiple cryptocurrency exchanges.
Another thing you need to consider when trading cryptocurrencies is the price of your preferred coin.
Where’s the price of your cryptocurrency?
Is it cheap? Is it at an all-time new high? Or maybe at new lows?
As we already mentioned, you should never buy cryptocurrency solely based on their price. Instead analyze other factors such as valuation, available coin supply, what technology it uses, and the target market.
If you want to maximize your cryptocurrency gains, you’ll also have to apply the “buy low, sell high” principle. This basic principle is part of any successful cryptocurrency trading strategy. You need a guide to cryptocurrency investing that can teach you how to trade bitcoins for profit, the right way.
Our team at Trading Strategy Guides has developed lots of universal trading strategies that can be applied to any market. We recommend starting with our Step by step guide into price action.
Step #4 Why are you optimistic about your cryptocurrency choice?
Why you are optimistic about your cryptocurrency choice is a fundamental question that you need to answer if you want to catch the next Bitcoin.
We have put together four major categories that you should keep an eye on when trading cryptocurrencies:
- What market or industry is the coin disrupting (virtual payments, cloud storage, finance, etc.)?
- What is the technology behind the coin? Make sure it’s easy to use, accessible, and the fact that the blockchain technology is actually addressing an issue.
- Solid team. Do your research and make sure the team behind your favorite cryptocurrency has experience is big enough and has the necessary skills to implement the claims these coins are stating they are going to make.
- This is probably the most extreme and important factor because this will increase the demand for the cryptocurrency and it means people are using the blockchain technology.
You should not invest in any cryptocurrency that doesn’t meet at least three of these four categories.
Don’t be caught in the fear of missing out on the next big opportunity in the crypto space. In the crypto community and cryptocurrency lingo, this has been coined as the FOMO trade.
Don’t do the FOMO trade.
Do your research and only invest in the best cryptocurrencies.
Step #5 Store your Bitcoin and Altcoins using a cryptocurrency wallet.
A cryptocurrency wallet is like your bank account for your crypto coins. Your bitcoins need to be stored in a bitcoin wallet the same way your Ethereum coins need to be kept in an Ethereum wallet, and so on and so forth.
In other words, a Bitcoin wallet is a piece of software that you use to communicate with the bitcoin network. You can tell the blockchain when you want to send or receive transactions.
There are multiple ways to store your cryptocurrencies both online and offline. You can even store your bitcoins on the exchanges from where you bought them which is not recommended because there is a high risk of hacking that can result in you losing your cryptocurrencies.
Cryptocurrencies can be stored both online and offline on a paper wallet or you can do it on a hardware wallet.
The best alternative to safely store your cryptocurrencies is to use a harder wallet or a paper wallet.
Conclusion – Crypto Guide for Beginner traders
This cryptocurrency guide for beginners is intended to be just a template into the crypto investment world.
Cryptocurrencies have the highest potential way to make money investing today. Don’t make the mistake of missing out on this once in a lifetime opportunity. Our crypto guide for beginner traders has all the right tools to help you make the right decisions when it comes to investing in cryptos.
If you want to invest in cryptocurrencies you need to follow a process and have a cryptocurrency trading strategy. We hope that this cryptocurrency guide for beginner traders will put you on the right track.
Thank you for reading!
Please leave a comment below if you have any questions about this Cryptocurrency Guide! Don’t forget to read our updated guide to the best cryptocurrency investments for 2020.
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